Brent Rises as US-Iran War Intensifies

Brent crude oil traded above $100 per barrel on Friday and was on track to gain nearly 14% for the week, as escalating tensions in the Middle East heightened fears of severe global supply disruptions. US President Donald Trump threatened "major military punishment" against Iran and the Houthis over any further attacks on Red Sea shipping and said he was considering a "massive attack" on Iran. His remarks followed attacks by Iran-backed Houthi militants on two Saudi oil tankers in the Red Sea, aimed at enforcing a newly declared blockade of Saudi ports and opening a new front in the conflict. Oil has already rallied more than 30% from pre-conflict levels this month as fighting disrupted crude flows through the Strait of Hormuz. Further tightening the global supply outlook, tanker attacks in the Black Sea and Sea of Azov forced the Caspian Pipeline Consortium to suspend loadings at its Black Sea terminal, disrupting a key export route that handles about 80% of Kazakhstan's crude exports.

Brent surged more than 6% to trade above $100 per barrel on Thursday, extending gains for a fifth consecutive session and reaching its highest level since May as escalating hostilities in the Middle East heightened concerns over global supply disruptions. US President Trump warned that the US would hold Iran responsible for any future Houthi attacks on commercial shipping in the Red Sea, threatening Tehran and the Yemen-based militants with "major military punishment." He also said he was "considering a massive attack" against Iran. The comments followed Houthi attacks on two Saudi oil tankers in the Red Sea, which the group said were intended to enforce a newly announced blockade of Saudi ports. Oil prices have now climbed more than 30% from the pre-conflict levels seen earlier this month. Adding to supply concerns, Kazakhstan's decision to suspend crude exports through the Caspian Pipeline Consortium terminal following drone attacks further tightened the market outlook.

Brent crude oil surged more than 7% to around $101 per barrel on Thursday, the highest level since May 22, as escalating geopolitical tensions intensified concerns over global supply. Iran-backed Houthi militants claimed responsibility for attacks on two Saudi oil tankers in the Red Sea, saying the strikes were aimed at enforcing a newly announced blockade of Saudi ports. The attacks raised fears of further disruptions to regional shipping, with buyers in Asia considering longer and more expensive alternative routes. Supply risks were compounded by continued attacks on vessels in the Strait of Hormuz, renewed US strikes on Iran, and Kazakhstan's decision to halt crude exports through the Caspian Pipeline Consortium terminal after drone attacks. Meanwhile, Washington and Tehran continued to rule out near-term peace talks, reinforcing expectations that tensions could keep oil prices elevated.